Conventional wisdom says you should fully fund your reserves. But it’s hard: humans aren’t wired to save for the future, nor does it always make good sense from an investment perspective. Here’s a different approach to condominium reserves and funding major projects.
California law requires HOAs to do a condo reserve study every three years. The study can include a daunting list of minor components while leaving gaping holes—and unexpected expenses to be covered by special assessments.
Condominium association policies are classified as commercial, not residential. That means condo associations are not guaranteed the consumer protections provided to single-family homes—including a moratorium on cancellations in areas near Los Angeles burn areas.
From repairs to remodeling to how you use your patio, condominium ownership means navigating a unique set of rules that are not always obvious or intuitive.
Given the reality of multi-million-dollar deductibles that may exceed actual damages, even HOAs that carry expensive earthquake policies may not have meaningful coverage. Boards can consider dropping the coverage—if their CC&Rs let them.
We live in angry times. Homeowners who berate the board and manager are exhausting. Controlling communication, refusing to engage with abuse, involving legal counsel, and utilizing a ‘peacemaker” can foster a calmer community environment.
Replacing common area lighting with energy-efficient, long-lasting LEDs can save HOAs significant money on electricity and replacement, with a quick payback and improved appearance. LADWP’s Commercial Direct Install program may replace some lighting for free.
To pass electrical inspection, you may be required to install a protective bollard for an EV charger. Here’s how to challenge that expensive and often unnecessary requirement, plus updates on electrical room safety repairs and how to process EV charging applications within an HOA.
California Law 4745 requires HOAs to allow owners to install EV chargers, even in aging buildings with limited electrical capacity. After a fire in the electrical room, a board explored its options, including third-party stations, Level 1 “trickle charging” and Level 2 chargers with devices to prevent overloading capacity.
Why is one condo’s monthly dues so much higher than another’s? Taking a hard look at the budget can produce some savings, but differences between buildings and the types of insurance, amenities, utility metering and services lead to inherently different costs.